SME Business News

In life and in business, opportunities can be born out of adversity. Those who suddenly find themselves out of job or disaffected by the recession may well take matters into their own hands and decide to follow their entrepreneurial dream.

With the largest reduction in GDP expected since 1946 in the next 12 months and unemployment levels set to rise to over 3.25 million by the end of 2010, according to Ernst & Young’s ITEM Club, the recession may well be the catalyst for the next generation of UK entrepreneurs.

They will follow in the footsteps of Bill Gates who founded Microsoft in the recession of 1975, James Dyson who launched his vacuum company in the early 90’s and Hewlett-Packard which was born in a garage at the end of the Great Depression.

Start-ups will be riding against cautious investors reluctant to lend, but the best ideas backed by a creative and persistent leader can get funding and be given the chance to prove themselves.

Stuart Watson, partner at Ernst & Young said: “The current environment is creating opportunities for entrepreneurs. It is easier to hire skilled labour and find available premises to let for new businesses. Those most likely to succeed are those with small start-up costs, quick routes to market and most importantly, those that will deliver to customers cash savings.”

Entrepreneurship will play an increasingly important part in re-energising our economy. It is the engine of growth, jobs and opportunity. Commercial finance providers must then be supportive in providing access to facilities that keep pace with growth.